If you skip linking Aadhaar card with PAN, your income tax return could be considered invalid, says an expert.

Highlights

The last date for Aadhaar-PAN linking is December 31, 2017

An SMS-based facility is provided to link the two identity numbers

A facility is also available on Income Tax Department's e-filing website

Over 13.28 crore Permanent Account Numbers (PANs) have been linked with Aadhaar till now, official sources said on Monday, according to a report by news agency Press Trust of India. The 12-digit Aadhaar number issued by the Unique Identification Authority of India (UIDAI) is mandatory to be linked with PAN, a 10-digit alphanumeric number allotted by the I-T department to a person, firm or entity, according to a government order. Without Aadhaar-PAN linking, people cannot file their income tax returns or ITR. The last date for Aadhaar-PAN linking is December 31, 2017.

Why link Aadhaar card with PAN

"If this linking (Aadhaar-PAN linking) is skipped, the return could be considered invalid and the person may have to file it again which shall be considered belated and may attract penalty, interest and other consequences like disallowances for losses," said Sandeep Sehgal, director of tax and regulatory at Ashok Maheshwary & Associates LLP.

How to link Aadhaar card with PAN

PAN Aadhaar link through SMS

An SMS-based facility is provided to link the two identity numbers. Assessees need to send an SMS to 567678 or 56161 in the format: UIDPAN<12-digit Aadhaar><10-digit PAN>For example: UIDPAN 111122223333 AAAPA9999Q

Through income tax website

A facility available on the Income Tax Department's e-filing website - incometaxindiaefiling.gov.in - enables assessees to link the two identities.

The taxman has outlined the following steps to carry out this task through the portal:

Once on the income tax e-filing website, click on the 'Link Aadhaar' option to proceed. Enter your PAN, Aadhaar and name given on the Aadhaar Card. The name detail to be filled in this step is case sensitive.

Click on 'Link Aadhaar' button to proceed.

An OTP or one-time-password will be sent to the mobile number registered with Aadhaar.

Give Aadhaar in PAN application form.

Through PAN application form

Aadhaar can also be seeded into the PAN database by quoting the biometrics-based identity number in the PAN application form - for allotment of a new PAN or for reprint of PAN card.

"In case where Aadhaar name is completely different from name in PAN database then the linkage may fall and the PAN holder has to change the name in either Aadhaar or in PAN database or visit personally to designated PAN application centre of NSDL eGov or UTIITSL for Biometric Aadhaar authentication," it said.

The government made the Aadhaar- PAN- linking mandatory for filing ITR and for obtaining a new PAN on July 1.

The Supreme Court had in June upheld the validity of an Income Tax Act provision making Aadhaar mandatory for allotment of PAN cards and ITR filing, but had put a partial stay on its implementation till a Constitution bench addressed the issue of right to privacy.

The Central Board of Direct Taxes (CBDT) had, in June this year, said the apex court's order had only given a "partial relief" to those who did not have an Aadhaar or an Aadhaar enrolment ID, and the taxman, hence, "will not cancel" the PAN of such individuals.